Correlation Between IShares Core and Timothy Plan
Can any of the company-specific risk be diversified away by investing in both IShares Core and Timothy Plan at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining IShares Core and Timothy Plan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core SP and Timothy Plan , you can compare the effects of market volatilities on IShares Core and Timothy Plan and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in IShares Core with a short position of Timothy Plan. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Timothy Plan.
Diversification Opportunities for IShares Core and Timothy Plan
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Timothy is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and Timothy Plan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Plan and IShares Core is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on iShares Core SP are associated (or correlated) with Timothy Plan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timothy Plan has no effect on the direction of IShares Core i.e., IShares Core and Timothy Plan go up and down completely randomly.
Pair Corralation between IShares Core and Timothy Plan
Considering the 90-day investment horizon iShares Core SP is expected to generate about the same return on investment as Timothy Plan . However, IShares Core is 1.22 times more volatile than Timothy Plan . It trades about 0.3 of its potential returns per unit of risk. Timothy Plan is currently producing about 0.36 per unit of risk. If you would invest 2,557 in Timothy Plan on November 1, 2024 and sell it today you would earn a total of 132.76 from holding Timothy Plan or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Core SP vs. Timothy Plan
Performance |
| Timeline |
| iShares Core SP |
| Timothy Plan |
IShares Core and Timothy Plan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Timothy Plan
The main advantage of trading using opposite IShares Core and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core position performs unexpectedly, Timothy Plan can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Timothy Plan will offset losses from the drop in Timothy Plan's long position.| IShares Core vs. JPMorgan Fundamental Data | IShares Core vs. Vanguard Mid Cap Index | IShares Core vs. SPDR SP 400 | IShares Core vs. SPDR SP 400 |
| Timothy Plan vs. Timothy Plan | Timothy Plan vs. Timothy Plan LargeMid | Timothy Plan vs. Timothy Plan High | Timothy Plan vs. Timothy Plan Small |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |